This under-performance is a problem for investors. After all, the funds charge hefty fees — typically two per cent of all assets, and a one-fifth cut of profits — often with the promise that they will do better than the markets.

And we’re hearing all kinds explanations for the collectively weak performance, like that it’s a product of alack of diversity in staffing.

One seemingly conflicting data point out this week, highlighted by my colleague Rachel Butt, is that even though hedge funds have been lagging for a few years, big investors in the industry — like pension funds and high net worth individuals — aren’t pulling back in any noticeable way.

The explanation for this is actually pretty straightforward: those investors may be pulling money out of poor performers, but they’re rolling it back into the hedge funds that are actually doing well right now. And that’s keeping overall assets in the industry steady.

Saba Capital(credit relative value strategy): Boaz Weinstein’s flagship fund has returned about 10% through June, according to a person familiar with the $1.5 billion fund.

Tulip Trend Fund (managed futures): Tulip Trend Fund (USD C-Class) is up 20.15% through June, according to a fund document obtained by Business Insider. The fund, which is overseen by Progressive Capital Partners in Switzerland, manages $298 million. Tulip’s returns have swung from red to green over the past few years, returning 35.53% in 2014 but dropping 10.65% last year, the document shows.

Mudrick Distressed Opportunities (distressed debt): The fund returned 16.96% through June, according to an HSBC report. That would be a turnaround from last year, as the fund was down for most of the year, according to Bloomberg. Mudrick didn’t respond to a request for comment.

Quest Partners (managed futures): The $624 million firm’s flagship fund returned 18.34% through June, a performance document viewed by Business Insider shows. The fund is part of Quest’s managed futures strategy, which manages $325 million; $113 million of that is in the flagship fund, according to spokesman Max Hilton at Peregrine Communications, an external PR firm.

Beachhead Capital Dynamic Beta (liquid alts CTA): This CTA strategy is up 11.4% net through July 8, according to Andrew Beer, the firm’s CEO. The strategy is not technically a hedge fund but a managed account with lower fees than traditional funds.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.